Temporary Tax Cut on Social Security Retirement and Survivor Benefits (2024-2025).
This act temporarily reduces the federal income tax paid on Social Security retirement and survivor benefits, as well as certain railroad retirement benefits. The change applies for two tax years (2024 and 2025), resulting in higher net income for beneficiaries. Crucially, the law ensures that the Social Security Trust Funds are protected from revenue loss by transferring equivalent amounts from the general budget.
Key points
The amount of Social Security retirement and survivor benefits subject to federal income tax will be temporarily reduced for tax years 2024 and 2025.
The taxable portion is reduced by 10% in 2024 and by 20% in 2025, leading to increased take-home income for eligible recipients.
This tax reduction applies only to retirement and survivor benefits, not to disability benefits.
The tax cut is temporary and expires at the end of the 2025 tax year.
Expired
Additional Information
Print number: 118_S_2800
Sponsor: Sen. Ricketts, Pete [R-NE]
Process start date: 2023-09-14